Short-term health insurance companies in Arizona
**Navigating Short-Term Health Insurance in Arizona: A Comprehensive Guide**
As an independent insurance agent with Blake Insurance Group, I have seen firsthand the challenges that individuals and families in Arizona face when it comes to finding affordable and reliable health insurance. Short-term health insurance can be a valuable option for those needing immediate coverage or a temporary solution.
However, it can be daunting to understand the intricacies of these plans and how they differ from traditional Affordable Care Act (ACA) plans.
In this guide, we will delve into the world of short-term health insurance in Arizona, exploring its benefits, limitations, and how it compares to ACA plans. Whether you are between jobs, waiting for employer-sponsored coverage to begin, or simply need a bridge until the next open enrollment period, this guide aims to provide you with the information you need to make informed decisions about your health insurance needs.
Let’s start by breaking down the key aspects of short-term health insurance in Arizona and how it can fit into your overall health insurance strategy.
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What is Short-Term Health Insurance?
Short-term health insurance is temporary medical coverage designed to provide individuals with health insurance for a limited period, typically up to 364 days, with the option to renew for up to 36 months. However, new regulations will limit the total duration to four months starting September 1, 2024. These plans are not required to comply with the Affordable Care Act (ACA) guidelines, so they do not have to cover all essential health benefits such as maternity care, mental health services, and prescription drugs.
**Key Features:**
– **Temporary Coverage**: Short-term health insurance plans are designed to fill gaps in coverage, such as when you are between jobs, waiting for employer-sponsored coverage to begin, or need immediate coverage.
– **Limited Benefits**: These plans typically cover basic medical services such as doctor visits, urgent care, emergency care, and sometimes prescription drugs but may not include all essential health benefits.
Pre-Existing Conditions: Short-term health insurance plans can deny coverage for pre-existing conditions, charge higher premiums based on health history, or refuse to pay for specific procedures related to pre-existing conditions.
– **Cost and Flexibility**: Short-term health insurance plans often have lower premiums than unsubsidized ACA plans, but they may have higher deductibles and out-of-pocket costs.
– **Application and Enrollment**: The application process is straightforward, and coverage can begin as early as the next day after application, with no open enrollment period restrictions
Top Short-Term Health Insurance Providers in Arizona
**National General Accident & Health**:
– **Rating:** 95 out of 100
Monthly Rate:** $156
– **Key Features:** Offers plans from 30 days to one year, telemedicine benefits, and discounts through its LIFE Association membership. National General Accident & Health is known for its flexibility and lower out-of-pocket maximums compared to other providers.
**Everest Reinsurance Company**:
– **Rating:** 85 out of 100
Monthly Rate:** $178
– **Key Features:** Provides comprehensive medical coverage, including mental health and home health care, with deductibles ranging from $1,000 to $10,000. Everest’s FlexTerm policy allows you to see any doctor and go to any hospital, offering greater flexibility.
**UnitedHealthcare**:
– **Rating:** 68 out of 100
Monthly Rate:** $126
– **Key Features:** Offers a wide range of plans with deductibles from $1,000 to $25,000 and lifetime payout maximums of $500,000 or $1 million. UnitedHealthcare’s plans are underwritten by Golden Rule Insurance, which is known for its good customer service.
**Pivot Health**:
**Rating:** 67 out of 100
– **Monthly Rate:** $163
– **Key Features:** Provides affordable short-term health insurance plans with up to $1 million in total coverage and deductibles ranging from $1,000 to $20,000. Pivot Health offers seven different short-term plans, including Economy, Choice, Standard, Deluxe, SureCare, Epic, and Quantum.
**Companion Life Insurance Company**:
– **Monthly Rate:** $141
– **Key Features:** Offers the lowest average premium among the top providers, making it a cost-effective option for those needing temporary coverage. Companion Life Insurance Company covers one month, averaging between $140 and $160.
Comparison Table: Top Short-Term Health Insurance Providers in Arizona
| Provider | Average Monthly Cost | Key Features | Customer Satisfaction Rating |
|---|---|---|---|
| National General Accident & Health | $156 | Plans from 30 days to 1 year, telemedicine benefits, lower out-of-pocket maximums | 95 |
| Everest Reinsurance Company | $178 | Comprehensive coverage including mental and home health care, flexibility with doctors | 85 |
| UnitedHealthcare | $126 | Wide range of plans with deductibles from $1,000 to $25,000, good customer service | 68 |
| Pivot Health | $163 | Affordable plans with up to $1 million in coverage and various options | 67 |
| Companion Life Insurance Company | $141 | Lowest average premium, cost-effective for temporary coverage | 62 |
Pros and Cons of Short-Term Health Insurance
**Advantages:**
Low Cost: Short-term health insurance plans are often more affordable than unsubsidized ACA plans, making them an attractive option for those needing temporary coverage.
– **Temporary Solution**: These plans are ideal for individuals between jobs, waiting for employer-sponsored coverage to begin, or needing immediate coverage outside of the open enrollment period.
– **Flexibility**: Short-term health insurance plans can be purchased anytime and offer quick activation, often starting the next day after application.
– **Customization**: Depending on the insurance carrier, many different plan designs are available, allowing individuals to choose a plan that meets their specific needs.
**Disadvantages:**
– **Limited Coverage**: Short-term health insurance plans do not cover all essential health benefits, such as maternity care, mental health services, and prescription drugs, which can lead to higher out-of-pocket costs.
– **Non-Renewable**: Starting September 1, 2024, short-term health insurance plans will be limited to a total duration of no more than four months, including renewals.
Pre-Existing Conditions: These plans can deny coverage for pre-existing conditions, charge higher premiums based on health status, or exclude specific conditions from future treatment.
– **High Deductibles**: Short-term health insurance plans often have higher deductibles and out-of-pocket costs compared to traditional health insurance plans.
– **Lack of Protections**: These plans do not offer the same protections as ACA-compliant plans, such as guaranteed issue and community rating, which can result in higher costs for those with pre-existing conditions.
Comparing Short-Term Health Insurance to ACA Plans: Differences in Coverage
– **Essential Health Benefits**: Unlike ACA plans, which must include all 10 essential health benefits, short-term health insurance plans do not have to cover these benefits, such as maternity care, mental health services, and prescription drugs.
Pre-Existing Conditions: Short-term health insurance plans can deny coverage for pre-existing conditions, whereas ACA plans must cover these conditions.
– **Guaranteed Issue**: ACA plans are guaranteed issues, meaning that everyone who applies is accepted, whereas short-term health insurance plans are not guaranteed issues and can deny coverage based on health history.
– **Lifetime or Annual Dollar Limits**: Short-term health insurance plans may have lifetime or annual dollar limits on health benefits, which ACA plans do not have.
– **Network Restrictions**: Short-term health insurance plans often do not have network restrictions, allowing individuals to see any doctor they choose, whereas ACA plans may have narrower provider networks.
– **Enrollment Periods**: Short-term health insurance plans can be purchased anytime. ACA plans are typically available only during the open enrollment period or during a special enrollment period due to a qualifying life event.
Key Differences Table
| Feature | Short-Term Health Insurance | ACA Plans |
|---|---|---|
| Essential Health Benefits | Not required to cover all 10 essential health benefits | Must include all 10 essential health benefits |
| Pre-Existing Conditions | Can deny coverage for pre-existing conditions | Must cover pre-existing conditions |
| Guaranteed Issue | Not guaranteed issue | Guaranteed issue |
| Lifetime or Annual Dollar Limits | May have lifetime or annual dollar limits | No lifetime or annual dollar limits |
| Network Restrictions | Often no network restrictions | May have narrower provider networks |
| Enrollment Periods | Can be purchased at any time | Available only during open enrollment or special enrollment periods |
How to Apply for Short-Term Health Insurance in Arizona
**Determine Your Coverage Needs**:
– Assess how long you need coverage and what benefits are essential, such as prescription drugs, emergency care, and specific deductibles.
**Choose a Provider**:
– Select a reputable insurance company that offers short-term health insurance plans in Arizona. National General Accident & Health and Everest Reinsurance Company are highly rated-providers.
**Complete a Health Questionnaire**:
– Fill out a health questionnaire detailing your medical history, including any pre-existing conditions you’ve had within the past five years. This information will be used to determine your eligibility for coverage.
**Enroll in a Plan**:
– If you qualify, you can enroll in a short-term plan directly from an insurer, agent, or health insurance broker. Coverage can begin as soon as the day after your application is approved.
**Review and Understand Your Plan**:
– Carefully review the terms and conditions of your plan, including any exclusions and limitations, to ensure it meets your needs.
**Pay Your Premium**:
– Pay your first month’s premium to activate your coverage. Many companies accept direct withdrawals from your bank account or payment by credit card.
**Key Points to Consider**
– **Availability**: Short-term health insurance plans are available year-round, with no open enrollment period restrictions.
– **Duration**: Plans can last from a few weeks to three years, but starting September 1, 2024, the maximum term will be reduced to four months, including renewals.
Pre-Existing Conditions: Short-term health insurance plans can deny coverage for pre-existing conditions or charge higher premiums based on health status.
– **Limited Coverage**: These plans do not cover all essential health benefits and may have higher deductibles and out-of-pocket costs than ACA plans.
Cost of Short-Term Health Insurance in Arizona
**Average Monthly Cost**: The average monthly cost of short-term health insurance in Arizona can range from $69 to $311 for a 35-year-old woman, depending on the level of coverage and the insurance provider.
**Variability in Premiums**: Premiums can vary based on age, medical history, and the chosen plan. For example, a plan with a high deductible and low total coverage will have lower premiums, while a plan with a lower deductible and more coverage will have higher premiums.
**Out-of-Pocket Costs**: Short-term health insurance plans often have higher deductibles, copayments, and coinsurance than traditional ones. These costs can increase quickly, especially if you need ongoing medical care.
**Plan Duration**: The length of the plan can also impact costs. Plans that last for a shorter period, such as under six months, may have lower premiums but higher out-of-pocket costs if you need medical care.
**Comparison of Providers**: Different insurance providers offer varying levels of coverage and costs. For example, National General Accident & Health offers plans with an average maximum out-of-pocket (MOOP) of $7,500, while Everest Reinsurance Company and UnitedHealthcare have higher MOOPs.
Cost Comparison Table
| Provider | Average Monthly Cost | MOOP |
|---|---|---|
| National General Accident & Health | $169 | $7,500 |
| Everest Reinsurance Company | $192 | $7,958 |
| UnitedHealthcare | $222 | $11,733 |
| Pivot Health | $163 | Not specified |
| Companion Life Insurance Company | $141 | Not specified |
Frequently Asked Questions (FAQs) About Short-Term Health Insurance in Arizona
- What is Short-Term Health Insurance?
- Short-term health insurance, also known as temporary health insurance, provides temporary medical coverage for individuals who need immediate protection but cannot afford or do not qualify for traditional health insurance plans.
- Who Can Buy Short-Term Health Insurance in Arizona?
- Residents of Arizona who meet the underwriting guidelines of insurers can purchase short-term health insurance. This typically includes individuals under 65 years old who do not have pre-existing conditions that would result in a declined application.
- How Long Can Short-Term Health Insurance Plans Last in Arizona?
- Until September 1, 2024, short-term health insurance plans in Arizona can last up to 364 days with the option to renew for up to 36 months. After September 1, 2024, these plans will be limited to a total duration of no more than four months, including renewals.
- What Does Short-Term Health Insurance Cover?
- Short-term health insurance plans typically cover basic medical services such as emergency care, urgent care, certain prescription medications, routine doctor visits, medical tests, and preventive care. However, they do not cover all essential health benefits, including pre-existing conditions, maternity care, and mental health services.
- How Do I Enroll in a Short-Term Health Insurance Plan?
- To enroll in a short-term health insurance plan, you must complete a health questionnaire detailing your medical history and list any pre-existing conditions you’ve had within the past five years. If you qualify, you can enroll directly from an insurer, agent, or health insurance broker.
- Can I Purchase Short-Term Health Insurance Through the Health Insurance Marketplace?
- No, short-term health insurance plans cannot be purchased through the Health Insurance Marketplace or a state-based exchange. Instead, you must shop with insurance providers who offer plans within your state.
- How Much Does Short-Term Health Insurance Cost in Arizona?
- The cost of short-term health insurance in Arizona can vary significantly based on the applicant’s age, zip code, whether they use tobacco, and the health insurance company they choose. These plans are often more affordable than unsubsidized ACA plans but may have higher deductibles and out-of-pocket costs.
- What Are the Limitations of Short-Term Health Insurance Plans?
- Short-term health insurance plans have several limitations, including not covering pre-existing conditions, having higher deductibles and out-of-pocket costs, and excluding certain essential health benefits. They also may have dollar limits on the coverage they provide.
Blake Nwosu
Owner & Principal Agent
Blake Insurance Group
Phone: (888) 387-3687
Email: [email protected]
Hours: Mon-Fri 9:00 am to 5:00 pm
Sat-Sun: Closed